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Insurance Companies Act

Version of section 229 from 2003-01-01 to 2007-04-19:

Marginal note:Application to Minister

  •  (1) A company shall, within three months after the approval of a mutualization proposal in accordance with section 228, apply to the Minister for approval of the proposal.

  • Marginal note:Criteria for approval

    (2) In determining whether to approve a mutualization proposal, the Minister shall consider all matters that the Minister considers relevant and may not approve the proposal unless satisfied that

    • (a) the proposal was approved by the shareholders and policyholders pursuant to section 228;

    • (b) the conversion of the company into a mutual company may reasonably be expected to be achieved under the terms of the proposal and in accordance with this section and sections 230 to 236;

    • (c) there are no reasonable grounds for believing that the conversion would cause the company to be in contravention of any regulation referred to in any of subsections 515(1) and (2) and 516(1) and (2) or in any direction made pursuant to subsection 515(3) or 516(4);

    • (d) the stated capital of the company has ceased to be an important factor in safeguarding the interests of the policyholders of the company, having regard to the quality and amount of the assets of the company, the surplus of the company relative to its liabilities, the nature of the business carried on by the company and any other considerations deemed by the Minister to be relevant;

    • (e) the price fixed by the directors for the purchase or other acquisition of the common shares of the company under the proposal is fair and reasonable in the circumstances; and

    • (f) the proposal is in the best interests of the financial system in Canada.

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